KULR Technology Group, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 ​ ​ (unaudited) ​ ​ ​ Assets ​ ​ Current Assets: ​ ​ Cash ​ $ 20,588,596 ​ $ 29,831,858 Accounts receivable billed, current portion ​ 2,956,726 ​ 1,984,518 Accounts receivable unbilled, current portion ​ ​ 490,223 ​ ​ 660,672 Grant receivable ​ ​ 501,032 ​ ​ — Inventory ​ 784,609 ​ 545,467 Inventory deposits ​ ​ 457,892 ​ ​ — Prepaid expenses and other current assets ​ 2,749,049 ​ 1,141,540 Total Current Assets ​ 28,528,127 ​ 34,164,055 Digital assets ​ ​ 112,539,271 ​ ​ 20,281,184 Digital assets held as collateral ​ ​ 7,983,990 ​ ​ — Accounts receivable billed, non-current portion ​ ​ — ​ ​ 1,446,489 Accounts receivable unbilled, non-current portion ​ ​ 1,180,129 ​ ​ — Property and equipment, net ​ 3,461,267 ​ 3,676,544 Equipment deposits ​ ​ 59,763 ​ ​ 1,355,174 Security deposits ​ ​ 48,158 ​ ​ 48,158 Intangible assets, net ​ ​ 470,377 ​ ​ 577,099 Operating lease right-of-use assets, net ​ ​ 1,476,478 ​ ​ 1,216,772 Finance lease right-of-use asset, net ​ ​ 5,826 ​ ​ 6,215 Deferred financing costs ​ ​ 309,428 ​ ​ 155,497 Total Assets ​ $ 156,062,814 ​ $ 62,927,187 ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ Current Liabilities: ​ ​ ​ Accounts payable ​ $ 1,237,837 ​ $ 2,061,266 Accrued expenses and other current liabilities ​ 1,300,059 ​ 1,160,446 Loan payable ​ 3,800,000 ​ ​ — Accrued issuable equity ​ ​ 152,740 ​ ​ 420,427 Operating lease liabilities, current portion ​ ​ 414,436 ​ ​ 493,468 Finance lease liability, current portion ​ ​ 2,526 ​ ​ 2,463 Notes payable, net of discount, current portion ​ ​ — ​ ​ 494,796 Deferred revenue ​ ​ 21,489 ​ ​ 32,768 Total Current Liabilities ​ 6,929,087 ​ 4,665,634 Operating lease liabilities, non-current portion ​ ​ 1,174,152 ​ ​ 818,750 Finance lease liability, non-current portion ​ ​ 1,949 ​ ​ 3,852 Other non-current liabilities ​ ​ — ​ ​ 10,966 Total Liabilities ​ ​ 8,105,188 ​ ​ 5,499,202 ​ ​ ​ ​ Commitments and contingencies (Note 13) ​ ​ ​ ​ ​ Stockholders’ Equity ​ ​ Preferred stock, $ 0.0001 par value, 20,000,000 shares authorized ​ ​ ​ ​ Series A Preferred Stock, 1,000,000 shares designated; 1,000,000 and 730,000 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively; ​ ​ 100 ​ ​ 73 Series B Convertible Preferred Stock, 31,000 shares designated; none issued and outstanding at September 30, 2025 and December 31, 2024 ​ — ​ — Series C Preferred Stock, 400 shares designated; none issued and outstanding at September 30, 2025 and December 31, 2024 ​ ​ — ​ ​ — Series D Preferred Stock, 650 shares designated; none issued and outstanding at September 30, 2025 and December 31, 2024 ​ ​ — ​ ​ — Common stock, $ 0.0001 par value, 500,000,000 shares authorized; 42,636,858 and 42,614,936 shares issued and outstanding at September 30, 2025, respectively; 33,100,207 and 33,083,812 shares issued and outstanding at December 31, 2024, respectively ​ 4,264 ​ 3,310 Additional paid-in capital ​ ​ 249,796,653 ​ ​ 141,532,047 Treasury stock, at cost; 21,922 and 16,395 shares held at September 30, 2025 and December 31, 2024, respectively. ​ ​ ( 393,744 ) ​ ​ ( 296,222 ) Accumulated deficit ​ ( 101,449,647 ) ​ ( 83,811,223 ) Total Stockholders’ Equity ​ 147,957,626 ​ 57,427,985 Total Liabilities and Stockholders’ Equity ​ $ 156,062,814 ​ $ 62,927,187 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Revenue ​ $ 6,884,840 ​ $ 3,185,778 ​ $ 13,306,443 ​ $ 7,366,887 Cost of revenue ​ 6,255,960 ​ 928,326 ​ ​ 11,757,508 ​ ​ 4,026,018 Gross Profit ​ 628,880 ​ 2,257,452 ​ 1,548,935 ​ 3,340,869 Operating Expenses ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 2,323,010 ​ 1,232,333 ​ 7,209,664 ​ 3,492,144 Selling, general, and administrative ​ 6,263,803 ​ 2,735,419 ​ 19,836,875 ​ 11,542,820 Credit losses on accounts receivable ​ 780,643 ​ — ​ 780,643 ​ — Impairment of equipment deposits ​ ​ — ​ ​ — ​ ​ 1,355,174 ​ ​ — Total Operating Expenses ​ 9,367,456 ​ 3,967,752 ​ 29,182,356 ​ 15,034,964 Loss From Operations ​ ( 8,738,576 ) ​ ( 1,710,300 ) ​ ( 27,633,421 ) ​ ( 11,694,095 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Income (Expense) ​ ​ ​ ​ ​ ​ ​ ​ Change in fair value of digital assets ​ 6,837,563 ​ — ​ 14,456,623 ​ — Impairment of equity investment ​ ​ ( 3,325,045 ) ​ ​ — ​ ​ ( 3,325,045 ) ​ ​ — Credit loss on convertible loan receivable ​ ​ ( 1,832,690 ) ​ ​ — ​ ​ ( 1,832,690 ) ​ ​ — Interest income ​ ​ 130,408 ​ ​ — ​ ​ 467,807 ​ ​ — Change in fair value of accrued issuable equity ​ ​ 89,815 ​ ​ 13,437 ​ ​ 409,091 ​ ​ ( 2,302 ) Interest expense ​ ​ ( 135,390 ) ​ ​ ( 28,888 ) ​ ​ ( 147,911 ) ​ ​ ( 195,124 ) Amortization of debt discount ​ ​ — ​ ​ ( 278,013 ) ​ ​ ( 82,878 ) ​ ​ ( 980,289 ) Gain (loss) on debt extinguishment, net ​ ​ — ​ ​ — ​ ​ 50,000 ​ ​ ( 31,358 ) Total Other Income (Expense), net ​ 1,764,661 ​ ( 293,464 ) ​ 9,994,997 ​ ( 1,209,073 ) Net Loss ​ $ ( 6,973,915 ) ​ $ ( 2,003,764 ) ​ $ ( 17,638,424 ) ​ $ ( 12,903,168 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss Per Share ​ ​ ​ ​ ​ ​ ​ ​ - Basic and Diluted ​ $ ( 0.17 ) ​ $ ( 0.08 ) ​ $ ( 0.47 ) ​ $ ( 0.60 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average Number of Common Shares Outstanding ​ ​ ​ ​ ​ ​ ​ ​ - Basic and Diluted ​ 41,137,530 ​ 24,312,500 ​ 37,800,133 ​ 21,669,235 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 5 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 ​ ​ Series A ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Preferred Stock ​ Common Stock ​ Paid-In ​ Treasury Stock ​ Accumulated ​ Stockholders’ ​ Shares Amount Shares Amount Capital Shares Amount Deficit Equity Balance - January 1, 2025 730,000 ​ $ 73 ​ 33,100,207 ​ $ 3,310 ​ $ 141,532,047 ​ 16,395 ​ $ ( 296,222 ) ​ $ ( 83,811,223 ) ​ $ 57,427,985 Preferred stock issued for no consideration ​ 270,000 ​ ​ 27 ​ — ​ ​ — ​ ​ ( 27 ) ​ — ​ ​ — ​ ​ — ​ ​ — Shares returned to treasury for employee payroll tax obligations — ​ ​ — ​ — ​ — ​ ​ — ​ 3,442 ​ ​ ( 63,332 ) ​ — ​ ( 63,332 ) Common stock issued upon the exercise of options ​ — ​ ​ — ​ 1,063 ​ ​ — ​ ​ 7,565 ​ — ​ ​ — ​ ​ — ​ ​ 7,565 Common stock issued for at the market offering (1) ​ — ​ ​ — ​ 2,425,959 ​ ​ 243 ​ ​ 49,642,687 ​ — ​ ​ — ​ ​ — ​ ​ 49,642,930 Shares withheld for employee payroll tax obligations ​ — ​ ​ — ​ ( 12,483 ) ​ ​ ( 1 ) ​ ​ ( 145,790 ) ​ — ​ ​ — ​ ​ — ​ ​ ( 145,791 ) Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued for services ​ — ​ ​ — ​ 7,625 ​ ​ 1 ​ ​ 82,039 ​ — ​ ​ — ​ ​ — ​ ​ 82,040 Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 62,610 ​ ​ 6 ​ ​ ( 6 ) ​ — ​ ​ — ​ ​ — ​ ​ — Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,518,895 ​ — ​ ​ — ​ ​ — ​ ​ 1,518,895 Amortization of stock options — ​ ​ — ​ — ​ ​ — ​ ​ 15,604 ​ — ​ ​ — ​ — ​ 15,604 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 18,806,658 ) ​ ​ ( 18,806,658 ) Balance - March 31, 2025 ​ 1,000,000 ​ ​ 100 ​ 35,584,981 ​ ​ 3,559 ​ ​ 192,653,014 ​ 19,837 ​ ​ ( 359,554 ) ​ ​ ( 102,617,881 ) ​ ​ 89,679,238 Common stock issued upon the exercise of options ​ — ​ ​ — ​ 625 ​ ​ — ​ ​ 3,250 ​ — ​ ​ — ​ ​ — ​ ​ 3,250 Common stock issued for at the market offering (2) — ​ ​ — ​ 3,832,456 ​ 383 ​ ​ 37,249,626 ​ — ​ ​ — ​ — ​ 37,250,009 Shares returned to treasury for employee payroll tax obligations ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ 2,085 ​ ​ ( 34,190 ) ​ ​ — ​ ​ ( 34,190 ) Shares withheld for employee payroll tax obligations — ​ ​ — ​ ( 11,625 ) ​ ( 1 ) ​ ​ ( 114,548 ) ​ — ​ ​ — ​ — ​ ( 114,549 ) Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued for services ​ — ​ ​ — ​ 1,375 ​ ​ — ​ ​ 13,530 ​ — ​ ​ — ​ ​ — ​ ​ 13,530 Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 67,341 ​ ​ 7 ​ ​ ( 7 ) ​ — ​ ​ — ​ ​ — ​ ​ — Amortization of restricted common stock — ​ ​ — ​ — ​ ​ — ​ ​ 1,498,937 ​ — ​ ​ — ​ — ​ 1,498,937 Amortization of stock options ​ — ​ ​ — ​ — ​ ​ — ​ ​ 11,342 ​ — ​ ​ — ​ ​ — ​ ​ 11,342 Effect of reverse stock split ​ — ​ ​ — ​ 61 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 8,142,149 ​ ​ 8,142,149 Balance - June 30, 2025 ​ 1,000,000 ​ ​ 100 ​ 39,475,214 ​ ​ 3,948 ​ ​ 231,315,144 ​ 21,922 ​ ​ ( 393,744 ) ​ ​ ( 94,475,732 ) ​ ​ 136,449,716 Common stock issued for at the market offering(3) ​ — ​ ​ — ​ 3,161,922 ​ ​ 316 ​ ​ 17,324,854 ​ — ​ ​ — ​ ​ — ​ ​ 17,325,170 Shares withheld for employee payroll tax obligations ​ — ​ ​ — ​ ( 11,527 ) ​ ​ ( 1 ) ​ ​ ( 71,833 ) ​ — ​ ​ — ​ ​ — ​ ​ ( 71,834 ) Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 11,249 ​ ​ 1 ​ ​ ( 1 ) ​ — ​ ​ — ​ ​ — ​ ​ — Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,217,942 ​ — ​ ​ — ​ ​ — ​ ​ 1,217,942 Amortization of stock options ​ — ​ ​ — ​ — ​ ​ — ​ ​ 10,547 ​ — ​ ​ — ​ ​ — ​ ​ 10,547 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 6,973,915 ) ​ ​ ( 6,973,915 ) Balance - September 30, 2025 ​ 1,000,000 ​ $ 100 ​ 42,636,858 ​ $ 4,264 ​ $ 249,796,653 ​ 21,922 ​ $ ( 393,744 ) ​ $ ( 101,449,647 ) ​ $ 147,957,626 (1) Represents gross proceeds of $ 51,152,353 , less issuance costs of $ 1,509,423 . (2) Represents gross proceeds of $ 38,331,721 , less issuance costs of $ 1,081,712 . (3) Represents gross proceeds of $ 17,827,544 , less issuance costs of $ 502,374 . ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 6 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 ​ ​ Series A ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Preferred Stock ​ Common Stock ​ Paid-In ​ Treasury Stock ​ Accumulated ​ Stockholders’ ​ Shares Amount Shares Amount Capital Shares Amount Deficit Equity (Deficit) Balance - January 1, 2024 ​ — ​ $ — 16,753,959 ​ $ 1,675 ​ $ 64,399,445 ​ 16,396 ​ $ ( 296,222 ) ​ $ ( 66,287,594 ) ​ $ ( 2,182,696 ) Preferred stock issued for no consideration ​ 730,000 ​ ​ 73 ​ — ​ ​ — ​ ​ ( 73 ) ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued for the repayment of prepaid advance liability and related interest accrual pursuant to Advance Notices (1) ​ — ​ ​ — ​ 2,724,854 ​ ​ 273 ​ ​ 6,054,557 ​ — ​ ​ — ​ ​ — ​ ​ 6,054,830 Common stock issued for cash pursuant to Advance Notices (2) ​ — ​ ​ — ​ 2,403,544 ​ ​ 240 ​ ​ 2,906,173 ​ — ​ ​ — ​ ​ — ​ ​ 2,906,413 Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards exchanged for restricted stock units ​ — ​ ​ — ​ ( 271,064 ) ​ ​ ( 27 ) ​ ​ 27 ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 48,079 ​ ​ 5 ​ ​ ( 5 ) ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued for services ​ — ​ ​ — ​ 4,438 ​ ​ — ​ ​ 6,390 ​ — ​ ​ — ​ ​ — ​ ​ 6,390 Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ 781,496 ​ — ​ ​ — ​ ​ — ​ ​ 781,496 Amortization of stock options ​ — ​ ​ — ​ — ​ ​ — ​ ​ 32,041 ​ — ​ ​ — ​ ​ — ​ ​ 32,041 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 5,008,876 ) ​ ​ ( 5,008,876 ) Balance - March 31, 2024 ​ 730,000 ​ ​ 73 ​ 21,663,810 ​ ​ 2,166 ​ ​ 74,180,051 ​ 16,396 ​ ​ ( 296,222 ) ​ ​ ( 71,296,470 ) ​ ​ 2,589,598 Warrants issued in connection with note payable ​ — ​ ​ — ​ — ​ ​ — ​ ​ 112,863 ​ — ​ ​ — ​ ​ — ​ ​ 112,863 Common stock issued for cash pursuant to Advance Notices (3) ​ — ​ ​ — ​ 1,829,037 ​ ​ 183 ​ ​ 6,141,324 ​ — ​ ​ — ​ ​ — ​ ​ 6,141,507 Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 8,750 ​ ​ 1 ​ ​ ( 1 ) ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued for services ​ — ​ ​ — ​ 9,269 ​ ​ 1 ​ ​ 38,149 ​ — ​ ​ — ​ ​ — ​ ​ 38,150 Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ 814,338 ​ — ​ ​ — ​ ​ — ​ ​ 814,338 Amortization of stock options ​ — ​ ​ — ​ — ​ ​ — ​ ​ 29,165 ​ — ​ ​ — ​ ​ — ​ ​ 29,165 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 5,890,528 ) ​ ​ ( 5,890,528 ) Balance - June 30, 2024 ​ 730,000 ​ ​ 73 ​ 23,510,866 ​ ​ 2,351 ​ ​ 81,315,889 ​ 16,396 ​ ​ ( 296,222 ) ​ ​ ( 77,186,998 ) ​ ​ 3,835,093 Common stock issued for cash pursuant to ATM offering(4) ​ — ​ ​ — ​ 1,602,810 ​ ​ 160 ​ ​ 3,294,299 ​ — ​ ​ — ​ ​ — ​ ​ 3,294,459 Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 20,313 ​ ​ 2 ​ ​ ( 2 ) ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued for services ​ — ​ ​ — ​ 30,250 ​ ​ 3 ​ ​ 60,417 ​ — ​ ​ — ​ ​ — ​ ​ 60,420 Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 21,592 ) ​ — ​ ​ — ​ ​ — ​ ​ ( 21,592 ) Amortization of stock options ​ — ​ ​ — ​ — ​ ​ — ​ ​ 9,411 ​ — ​ ​ — ​ ​ — ​ ​ 9,411 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 2,003,764 ) ​ ​ ( 2,003,764 ) Balance - September 30, 2024 ​ 730,000 ​ $ 73 ​ 25,164,239 ​ $ 2,516 ​ $ 84,658,422 ​ 16,396 ​ $ ( 296,222 ) ​ $ ( 79,190,762 ) ​ $ 5,174,027 (1) Represents gross proceeds of $ 6,068,407 , less issuance costs of $ 13,577 . (2) Represents gross proceeds of $ 2,910,651 , less issuance costs of $ 4,238 . (3) Represents gross proceeds of $ 6,194,299 , less issuance costs of $ 52,792 . (4) Represents gross proceeds of $ 3,431,090 , less issuance costs of $ 136,631 . ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 7 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, ​ 2025 2024 Cash Flows From Operating Activities: ​ ​ ​ Net loss ​ $ ( 17,638,424 ) ​ $ ( 12,903,168 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ Amortization of debt discount ​ ​ 82,878 ​ ​ 980,289 Non-cash operating lease expense ​ ​ 432,146 ​ ​ 331,551 (Gain) loss on debt extinguishment ​ ​ ( 50,000 ) ​ ​ 31,358 Depreciation and amortization expense ​ ​ 920,694 ​ ​ 1,538,698 Credit losses on accounts receivable ​ ​ 780,643 ​ ​ — Impairment of equity investment ​ ​ 3,325,045 ​ ​ — Credit loss on convertible loan receivable ​ ​ 1,832,690 ​ ​ — Impairment of equipment deposits ​ ​ 1,355,174 ​ ​ — Change in fair value of accrued issuable equity ​ ( 409,091 ) ​ 2,302 Change in fair value of digital assets ​ ​ ( 14,456,623 ) ​ ​ — Stock-based compensation ​ ​ 4,510,241 ​ ​ 1,811,156 Mining of digital assets ​ ​ ( 6,085,452 ) ​ ​ — Loss on disposal of property and equipment ​ ​ — ​ ​ 26,490 Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable billed ​ ​ ( 807,394 ) ​ ​ ( 2,147,542 ) Accounts receivable unbilled ​ ​ ( 1,009,680 ) ​ ​ — Inventory ​ ​ ( 239,142 ) ​ ​ 542,792 Inventory deposits ​ ​ ( 457,892 ) ​ ​ 6,575 Prepaid expenses and other current assets ​ ( 1,641,699 ) ​ 27,833 Security deposits ​ — ​ ( 88,143 ) Accounts payable ​ ( 823,429 ) ​ ( 1,748,580 ) Accrued expenses and other current liabilities ​ ​ ( 233,463 ) ​ ​ ( 155,969 ) Operating lease liabilities ​ ( 415,482 ) ​ ( 236,207 ) Deferred revenue ​ ( 11,279 ) ​ ( 518,253 ) Total Adjustments ​ ( 13,401,115 ) ​ 404,350 Net Cash Used In Operating Activities ​ ​ ( 31,039,539 ) ​ ​ ( 12,498,818 ) Cash Flows From Investing Activities: ​ ​ ​ ​ ​ ​ Loan receivable ​ ​ ( 1,832,690 ) ​ ​ — Equity investments ​ ​ ( 3,325,045 ) ​ ​ — Equipment deposits ​ ​ ( 59,763 ) ​ ​ ( 22,738 ) Purchases of property and equipment ​ ​ ( 581,702 ) ​ ​ ( 188,267 ) Purchases of digital assets ​ ​ ( 79,700,002 ) ​ ​ — Net Cash Used In Investing Activities ​ ( 85,499,202 ) ​ ( 211,005 ) Cash Flows from Financing Activities: ​ ​ ​ ​ ​ ​ Proceeds from ATM equity financing ​ ​ 107,311,618 ​ ​ 3,431,090 Issuance costs on ATM equity financing (1) ​ ​ ( 2,685,424 ) ​ ​ ( 103,718 ) Proceeds from the SEPA ​ ​ — ​ ​ 9,104,950 Proceeds from exercise of stock options ​ ​ 10,815 ​ ​ — Proceeds from notes payable (2) ​ ​ — ​ ​ 2,730,000 Issuance costs on notes payable ​ ​ — ​ ​ ( 166,100 ) Repayments of notes payable ​ ​ ( 577,674 ) ​ ​ ( 2,439,855 ) Proceeds from loan payable ​ ​ 8,000,000 ​ ​ — Repayments of loan payable ​ ​ ( 4,200,000 ) ​ ​ — Payments for deferred financing costs ​ ​ ( 562,016 ) ​ ​ ( 128,041 ) Repayment of finance lease liability ​ ​ ( 1,840 ) ​ ​ ( 850 ) Net Cash Provided By Financing Activities ​ ​ 107,295,479 ​ ​ 12,427,476 Net Decrease In Cash ​ ​ ( 9,243,262 ) ​ ​ ( 282,347 ) Cash - Beginning of Period ​ 29,831,858 ​ 1,194,764 Cash - End of Period ​ $ 20,588,596 ​ $ 912,417 (1) Excludes $ 408,085 and $ 32,913 of deferred financing costs for 2025 and 2024, respectively. (2) Face value of $ 3,659,200 , less $ 929,200 original issue discount. ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 8 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ September 30, ​ 2025 2024 Supplemental Disclosures of Cash Flow Information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for: ​ ​ ​ ​ ​ ​ Interest ​ $ 110,432 ​ $ 17,505 Taxes ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Right-of-use asset for lease liability ​ $ 691,852 ​ $ 1,534,902 Deferred financing costs charged to additional paid-in capital ​ $ 408,085 ​ $ 89,943 Shares withheld for employee payroll tax obligations ​ $ 332,174 ​ $ — Shares returned to treasury for employee payroll tax obligations ​ $ 97,522 ​ $ — Common stock issued in satisfaction of accrued issuable equity ​ $ 69,500 ​ $ 26,400 Accounts payable and accrued expenses for property and equipment purchases ​ $ 16,604 ​ $ 36,483 Preferred shares issued for no consideration ​ $ 27 ​ $ 73 Common shares issued for restricted stock units vested ​ $ 14 ​ $ 8 Restricted stock awards converted to restricted stock units ​ $ — ​ $ 28 Original issue discount on indebtedness ​ $ — ​ $ 929,200 Deferred financing costs included in accounts payable ​ $ — ​ $ 123,068 Additions to property and equipment included in note payable ​ $ — ​ $ 42,788 Common stock issued pursuant to Advance Notices in satisfaction of prepaid advance liability and interest ​ $ — ​ $ 6,054,830 Right-of-use asset for finance lease liability ​ $ — ​ $ 7,768 Value of warrants issued in connection with notes payable ​ $ — ​ $ 112,863 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 9 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization and Operations KULR Technology Group, Inc., through its wholly-owned subsidiary, KULR Technology Corporation (collectively referred to as “KULR” or the “Company”), is a Bitcoin+ Treasury company that builds a portfolio of frontier technology businesses ranging from high-performance energy systems to AI Robotics. KULR delivers cutting-edge energy storage solutions for space, aerospace, and defense by leveraging a foundation of in-house battery design expertise, comprehensive cell and battery testing suite, and battery fabrication and production capabilities. The Company’s offering allows delivery of commercial-off-the-shelf and custom next-generation energy storage systems in rapid timelines for a fraction of the cost compared to traditional programs. Since late 2024, KULR has included bitcoin as a primary asset in its treasury program and committed to allocating up to 90% of its excess cash to the acquisition of bitcoin. Reverse Stock Split On June 23, 2025, the Company effected a reverse stock split wherein each 8 shares of common stock outstanding immediately prior to the effective date was combined and converted into one share of common stock (the “Reverse Stock Split”). All share and per share amounts in this Quarterly Report have been adjusted to reflect the effect of the Reverse Stock Split as if the Reverse Stock Split occurred as of the earliest period presented. Risks and Uncertainties The Company operates in a dynamic and highly competitive industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows: ability to obtain future financing; advances and trends in new technologies and industry standards; regulatory approval and market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. The “Tariff War”, especially with European Union, China, Canada and Mexico, could have an adverse effect on the Company’s supply chain potentially causing financial difficulty for the Company’s direct or indirect customers and reduced demand of the Company’s products. A continuation of these conflicts could have adverse changes in international trade policies and relations. Tariffs could increase the cost of the Company’s products and the components that go into making them. These increased costs could adversely impact the gross margin that the Company earns on its products. Tariffs could also make the Company’s products more expensive for customers, which could make the Company’s products less competitive and reduce consumer demand. Changing the Company’s operations in accordance with new or changed trade restrictions can be expensive, time-consuming and disruptive to the Company’s operations. In addition, the Company has invested in Bitcoin, which is a digital asset. Digital assets are loosely regulated and there is no central marketplace for asset exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Certain digital asset exchanges have been closed due to fraud, failure or security breaches. Any of the Company’s digital assets that reside on an exchange that shuts down may be lost. Several factors may affect the price of digital assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of digital assets, and the use of digital assets as a form of payment. There is no assurance that digital assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of digital asset payments by mainstream retail merchants and commercial businesses will continue to grow. As digital assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the digital asset industry. To the extent future regulatory actions or policies limit the ability to exchange digital assets or utilize them for payments, the demand for digital assets could be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert digital assets into fiat currency (e.g., U.S. dollars) or use digital assets to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying digital asset unit prices. 10 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The effect of any future regulatory change on digital assets in general is impossible to predict, but such change could be substantial and adverse to the Company and the value of the Company’s investments in digital assets. Digital assets are not insured or protected under the Federal Deposit Insurance Corporation (“FDIC”) or the Securities Investor Protection Company (“SIPC”). Accordingly, with respect to its Bitcoin investment, the Company does not enjoy the same protection as other assets covered by the FDIC or SIPC. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of September 30, 2025, and for the three and nine months ended September 30, 2025 and 2024. The results of operations for the three and nine months ended September 30, 2025, are not necessarily indicative of the operating results for the full year ending December 31, 2025, or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2024 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 31, 2025. The accompanying condensed consolidated balance sheet as of December 31, 2024, has been derived from the audited financial statements included in the Form 10-K. ​ NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Since the date of the Annual Report on Form 10-K for the year ended December 31, 2024, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these unaudited condensed consolidated financial statements include, but are not limited to, valuation of intangible assets, digital assets, investments, property, plant and equipment, equity securities, stock-based compensation, deferred revenue, loan receivable and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, digital assets and accounts receivable. The Company’s concentrations of credit risk also include concentrations from key customers and vendors. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the FDIC up to $250,000 at each institution. There were uninsured balances of $ 20,088,596 and $ 29,331,858 as of September 30, 2025 and December 31, 2024, respectively. 11 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ Accounts Receivable ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ As of ​ As of ​ ​ September 30, ​ September 30, ​ September 30, December 31, ​ 2025 2024 2025 2024 2025 ​ 2024 Customer A 69 % * ​ 48 % * ​ * ​ * ​ Customer B * ​ 32 % * ​ * ​ 21 % * ​ Customer C * ​ * ​ * ​ 14 % * ​ 25 % Customer D ​ * ​ * ​ * ​ 13 % * ​ * ​ Customer E ​ * ​ 21 % * ​ * ​ * ​ * ​ Customer F ​ * ​ * ​ * ​ 10 % * ​ * ​ Customer G ​ * ​ * ​ * ​ * ​ 27 % * ​ Customer H * ​ * ​ * ​ * ​ 27 % 41 % Customer I ​ * ​ * ​ * ​ * ​ * ​ 16 % Total 69 % 53 % 48 % 37 % 75 % 82 % * Less than 10% ​ There is no assurance the Company will continue to receive significant revenue from any of these customers. Any reduction or delay in operating activity from any of the Company’s significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company’s business and prospects. As a result of the Company’s significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company’s significant customers. Custody of Digital Assets The Company currently holds and intends to continue to hold all of its digital assets in a custodial account at a U.S. based, institutional-grade custodian that has demonstrated records of regulatory compliance and information security. The custodian may also serve as a liquidity provider. If the Company’s custodially-held digital assets were considered to be the property of the custodian’s estate in the event that the custodian were to enter bankruptcy, receivership or similar insolvency proceedings, the Company could be treated as a general unsecured creditor of the custodian, inhibiting the Company’s ability to exercise ownership rights with respect to such digital assets and this may ultimately result in the loss of the value related to some or all of such digital assets. Additionally, the digital assets the Company holds with our custodian and transacts with our trade execution partners do not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the FDIC or the SIPC. 12 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Vendor Concentrations The Company purchases inventory from vendors who individually represented 10% or more of the Company’s total purchases of inventory, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended For the Nine Months Ended ​ ​ September 30, September 30, ​ ​ 2025 2024 2025 2024 ​ Vendor A 45 % * ​ 14 % * ​ Vendor B * ​ * ​ 12 % * ​ Vendor C ​ * ​ * ​ * ​ 12 % ​ 45 % 0 % 26 % 12 % * Less than 10% Accounts Receivable Accounts receivable are carried at their contractual amounts, less an estimate for credit losses. During the three and nine months ended September 30, 2025, credit losses of $ 780,643 related to receivables from one customer were recorded (see Note 5 – Investments, Impairment and Credit Losses for further details). As of December 31, 2024, no allowances for credit losses were determined to be necessary. Management estimates the allowance for credit losses based on historical credit loss experience, existing economic conditions, the financial conditions of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted. Digital Assets In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which provides an update to existing digital asset guidance and requires an entity to measure certain digital assets at fair value. In addition, this guidance requires disclosures related to digital assets once it is adopted. The Company adopted ASU 2023-08 as of January 1, 2024. The Company reflects digital assets held at fair value on the condensed consolidated balance sheets and condensed consolidated statements of cash flows, the activity from the remeasurement of digital assets at fair value on the condensed consolidated statements of operations, and the required expanded disclosures in Note 3, Digital Assets. There was no cumulative effect adjustment to the Company’s retained earnings balance as a result of the adoption of ASU 2023-08. Digital assets are generally valued using prices as reported on reputable and liquid exchanges and may involve using an average of bid and ask quotes using closing prices provided by such exchanges as of the date and time of determination. Since the digital assets are traded on a 24-hour period, the Company uses the price at 4:00pm Eastern Standard Time (“EST”) to value its digital assets. Equity Investment The Company holds an investment in non-marketable equity securities of a company that does not have a readily available fair value. The investment is measured under the measurement alternative provided in Accounting Standards Codification (“ASC”) 321 on the Company’s condensed consolidated balance sheets. Under the measurement alternative method, the equity investment is carried at cost less impairment losses, adjusted for price changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company performs a qualitative assessment at each reporting period considering impairment indicators to evaluate whether the fair value of the investment is less than its carrying amount. If the qualitative assessment indicates that an investment is impaired, a loss is recorded equal to the difference between the fair value and carrying value of the investment. 13 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) As of September 30, 2025 the Company valued this investment at zero and recorded an impairment expense of $ 3,325,045 (see Note 5 – Investments, Impairment and Credit Losses for further details). Mining of Digital Assets The Company leases digital asset mining equipment, which provides hash calculations to a mining pool operator. The Company derives a portion of its revenue from its digital asset mining activities by providing hash calculations as part of transaction verification services within the digital currency networks of cryptocurrencies, such as bitcoin, commonly termed “cryptocurrency mining.” In consideration for these services, the Company receives digital awards which are recorded as revenue, based on the daily amount of bitcoin earned. The Company’s digital assets are recorded on the balance sheet at their fair value according to the Company’s accounting practices for digital assets. Unrealized gains or losses on the remeasurement of digital assets mined are recorded in the statement of operations. Lease costs associated with the digital asset mining operation are recorded as cost of revenue. Inventory The Company capitalizes inventory costs associated with products when future commercialization is considered probable, and a future economic benefit is expected to be realized. These costs consist of finished goods, raw materials, manufacturing-related costs, transportation and freight, and other indirect overhead costs. Inventory is comprised of carbon fiber velvet thermal interface solutions and internal short circuit batteries, which are available for sale, exoskeleton devices, as well as raw materials and work in process related primarily to the manufacture of safe cases. Safe cases provide a safe and cost-effective solution to commercially store and transport lithium batteries and mitigate the impacts of cell-to-cell thermal runway propagation. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. On occasion, the Company pays for inventory prior to receiving the goods. These payments are recorded as inventory deposits until the goods are received and these costs are included in the current asset section of the condensed consolidated balance sheet. Inventory at September 30, 2025 and December 31, 2024 was comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2025 ​ 2024 Raw materials ​ $ 484,005 ​ $ 363,224 Finished goods ​ 300,604 ​ 182,243 Total inventory ​ $ 784,609 ​ $ 545,467 ​ As of September 30, 2025 and December 31, 2024, inventory deposits were $ 457,892 and $ 0 , respectively, which consists of inventory purchases of goods that were paid for but not received as of period end. Finished goods inventory is held on-site at the San Diego, California and Webster, Texas locations. Certain raw materials are held off-site with certain contract manufacturers. Fair Value Measurements The Company measures the fair value of financial assets and liabilities based on the guidance of Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities 14 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) The carrying amounts of the Company’s financial assets and financial liabilities, such as cash, accounts receivable, loan receivable, accounts payable, accrued expenses and other current liabilities, notes payable and loan payable approximate fair values due to the short-term nature of these instruments. The carrying amount of the Company’s digital assets are recorded at fair value in accordance with ASC 820, Fair Value Measurement (“ASC 820”), based on quoted prices on the active exchange(s) that the Company has determined is the principal market for such assets (Level I inputs). The cost basis of digital assets is determined using the specific identification of each unit received. Realized and unrealized gains and losses are recorded to other (expense) income, net in our condensed consolidated statement of operations. The Company accounts for its equity investments under the measurement alternative provided in ASC 321, whereby the equity investment is initially recorded at cost, (including transaction costs), and is subsequently remeasured at fair value in accordance with the provisions on ASC 820 when it is impaired, or when the Company identifies observable price changes in orderly transactions for the identical or similar investment of the same issuer. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price; ● Step 4: Allocate the transaction price to the performance obligations in the contract; and ● Step 5: Recognize revenue when the company satisfies a performance obligation. For sales contracts with terms of more than one year, the Company recognizes any significant financing component as revenue over the contractual period using the effective interest method, and the associated interest income is reflected accordingly on the condensed consolidated statements of operations and included in other income. Principal versus Agent Considerations The Company evaluates its role under ASC 606 to determine whether it acts as a principal or agent where third-party sellers fulfill or ship orders to customers. The Company recognizes revenue on a gross or net basis depending on whether it acts as a principal or an agent in the transaction. The determination is based on an evaluation of whether the Company controls the specified good or service before it is transferred to the customer. 15 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) During the three and nine months ended September 30, 2025 and 2024, the Company recognized revenue primarily from the following different types of contracts: ● Product sales – Revenue is recognized at the point in time the customer obtains control of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer. For certain product sales contracts, the Company acts as an agent and revenue in connection with these contracts is presented net of the related costs. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agent service. ● Contract services – Revenue is recognized pursuant to the terms of each individual contract when the Company satisfies the respective performance obligations, which could be recognized at a point in time or over the term of the contract. Contract services revenue that is recognized over time may be recognized using the input method, based on labor hours expended, or using the output method based on milestones achieved, depending on the contract. ● Mining of digital assets – The Company has entered into lease agreements with a digital assets mining services company to operate digital asset mining machines on behalf of the Company and provide mining pool operating and hosting services. Pursuant to these agreements, the Company provides computing power to the mining pool operator. The Company is entitled to digital asset awards once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications. The Company’s fractional share is based on the total blocks expected to be generated on the Bitcoin network for the daily 24-hour period. Revenue from digital assets is considered non-cash consideration. ● Grant revenue - The Company has determined that government grant revenue does not fall under the Financial Accounting Standards Board (“FASB”) ASC 606. Under the grant contract, the State of Texas receives no direct benefit from the product development, and therefore does not meet the definition of a customer pursuant to ASC 606. As there is no authoritative guidance under U.S. GAAP on accounting for grants to for-profit business entities, the Company has applied the guidance in ASC 958 Not-for-Profit Entities by analogy. Further, the Texas Grant is considered a conditional contribution because the Texas Grant can only be used to reimburse allowable expenses. The grant is for the research and development of cold-temperature lithium-ion battery solutions for the next generation of Lunar and Martian missions which is part of the Company’s ongoing major or central activities. As such, the grant is considered revenue, which is only recognized when qualifying costs are incurred and it is reasonably assured that the conditions will be met. Grant revenue during the three and nine months ended September 30, 2025, was $ 501,032 , for the reimbursement of equipment purchases totaling $ 255,728 , and R&D expenses totaling $ 245,304 . The following table summarizes the Company’s revenue recognized in its condensed consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Revenue Recognized at a Point in Time: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product sales ​ $ 1,624,929 ​ $ 765,201 ​ $ 4,763,554 ​ $ 2,515,063 Contract services ​ ​ 362,276 ​ ​ 1,149,667 ​ ​ 1,783,273 ​ ​ 2,851,374 IP license ​ ​ — ​ ​ 1,028,767 ​ ​ — ​ ​ 1,028,767 Grant revenue ​ ​ 501,032 ​ ​ — ​ ​ 501,032 ​ ​ — Total ​ ​ 2,488,237 ​ ​ 2,943,635 ​ ​ 7,047,859 ​ ​ 6,395,204 Revenue Recognized Over Time: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mining of digital assets ​ ​ 4,396,603 ​ ​ — ​ ​ 6,085,452 ​ ​ — Contract services ​ — ​ 242,143 ​ 173,132 ​ 971,683 Total Revenue ​ $ 6,884,840 ​ $ 3,185,778 ​ $ 13,306,443 ​ $ 7,366,887 ​ 16 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenues (contract liabilities) on the condensed consolidated balance sheet. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers resulting in contract liabilities. As of September 30, 2025, the Company had billed accounts receivable of $ 2,956,726 and unbilled accounts receivable of $ 1,670,352 . As of December 31, 2024, the Company had billed accounts receivable of $ 3,431,007 and unbilled accounts receivable of $ 660,672 . Deferred revenues were $ 21,489 and $ 32,768 as of September 30, 2025 and December 31, 2024, respectively. Net Loss Per Share of Common Stock Basic net loss per share of common stock is computed by dividing net loss by the weighted average number of vested shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. ​ The following table presents the computation of basic and diluted net loss per share of common stock: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended For the Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 ​ 2025 2024 Numerator: ​ ​ ​ ​ Net loss ​ $ ( 6,973,915 ) ​ $ ( 2,003,764 ) ​ $ ( 17,638,424 ) ​ $ ( 12,903,168 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator (weighted average quantities): ​ ​ ​ ​ ​ ​ ​ ​ Common shares issued ​ 41,056,406 ​ 24,262,880 ​ 37,721,144 ​ 21,665,808 Less: Treasury shares purchased ​ ( 21,922 ) ​ ( 16,395 ) ​ ( 21,323 ) ​ ( 16,395 ) Less: Unvested restricted stock awards ​ ​ ( 7,812 ) ​ ​ ( 53,397 ) ​ ​ ( 8,402 ) ​ ​ ( 91,067 ) Add: Accrued issuable equity ​ ​ 17,108 ​ ​ 25,662 ​ ​ 14,964 ​ ​ 17,139 Add: Vested unissued restricted stock units ​ ​ 93,750 ​ ​ 93,750 ​ ​ 93,750 ​ ​ 93,750 Denominator for basic and diluted net loss per share ​ ​ 41,137,530 ​ ​ 24,312,500 ​ ​ 37,800,133 ​ ​ 21,669,235 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ ( 0.17 ) ​ $ ( 0.08 ) ​ $ ( 0.47 ) ​ $ ( 0.60 ) ​ The following shares were excluded from the calculation of weighted average dilutive shares of common stock for the three and nine months ended September 30, 2025 and for the three and nine months ended September 30, 2024 because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ For the Three and Nine For the Three and Nine ​ ​ Months Ended ​ Months Ended ​ ​ September 30, 2025 ​ September 30, 2024 Unvested restricted stock awards ​ 7,812 ​ 18,750 Unvested restricted stock units ​ 1,158,816 ​ 442,201 Options 26,250 ​ 67,293 Warrants ​ 88,905 ​ 339,323 Total 1,281,783 ​ 867,567 ​ Subsequent Events The Company has evaluated subsequent events through the date on which these unaudited condensed consolidated financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed in Note 15 – Subsequent Events. 17 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Segment Reporting Operating segments are components of an enterprise for which separate financial information is available and regularly reviewed by management in deciding how to allocate resources and evaluate performance. Management has determined that the Company has two significant operating segments: Energy Management Platform and Mining of Digital Assets, as discussed more fully in Note 14. In determining the appropriateness of segment definition, the Company considers the criteria of Accounting Standards Codification (“ASC”) 280, Segment Reporting. Recent Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023 – 09 are effective for annual periods beginning after December 15, 2024, with early adoption permitted. Since this new ASU addresses only disclosures, the Company does not expect the adoption of this ASU to have any material impact on its financial condition, results of operations, or cash flows. The Company expects that the adoption of ASU 2023-09 will require certain additional income tax disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. ASU 2024-03 is intended to improve disclosures about a public business entity’s expenses and provide more detailed information to investors about the types of expenses in commonly presented expense captions. The amendments in this ASU will be applied retrospectively and are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of implementing this guidance. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical‐expedient election that permits an entity to assume that current conditions as of the reporting date will not change over the remaining life of certain current accounts receivable and contract assets arising from transactions accounted for under ASC 606, “Revenue from Contracts with Customers.” The guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for reporting periods for which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the impact of implementing this guidance. Based on a preliminary assessment, the Company does not expect the adoption of this ASU will result in a material change to our accounting policies, results of operation, financial position or cash flows. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. It is intended to modernize the accounting for internal-use software costs to reflect the evolution of software development practices. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this guidance. ​ NOTE 3 – DIGITAL ASSETS ​ The Company’s digital assets are comprised solely of Bitcoin. In accordance with ASC Topic 820, Fair Value Measurement, the Company measures the fair value of its Bitcoin based on the quoted price at 4:00pm EST on the measurement date for a single Bitcoin on an active trading platform, Coinbase. Management has determined that Coinbase, an active exchange market, represents a principal market for Bitcoin and at 4:00pm EST, the price is both readily available and representative of fair value (Level 1 inputs). As of September 30, 2025, the Company held 1,056.69 digital assets at Coinbase with a cost basis of $ 106,785,454 , and a fair value of $ 120,523,261 . ​ 18 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following table is a summary of Bitcoin activity during the nine months ended September 30, 2025: ​ ​ ​ ​ ​ ​ Digital Assets and ​ ​ Digital Assets Held ​ ​ As Collateral Beginning balance at December 31, 2024 ​ $ 20,281,184 Additions - purchased ​ 79,700,002 Additions - mined ​ ​ 6,085,452 Dispositions ​ — Change in fair value ​ 14,456,623 Balance, September 30, 2025 ​ $ 120,523,261 ​ During the three months ended September 30, 2025, the Company purchased 90.00 Bitcoin via trade orders on Coinbase (the prime broker) at an average cost of $ 108,889 per Bitcoin, inclusive of fees and expenses, for an aggregate cost of $ 9,799,993 . During the nine months ended September 30, 2025, the Company purchased 783.81 Bitcoin via trade orders on Coinbase at an average cost of $ 101,683 per Bitcoin, inclusive of fees and expenses, for an aggregate cost of $ 79,700,002 . On March 7, 2025, the Company entered into a sixty-day lease agreement (the “First Machine Lease Agreement”) with a digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 850,000 . On May 16, 2025, the Company entered into a two hundred and twenty eight-day lease agreement (the “Second Machine Lease Agreement”) with the same digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 3,200,000 . On June 20, 2025, the Company entered into a one hundred and three-day lease agreement (the “Third Machine Lease Agreement”) with a new digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 2,756,795 . On July 30, 2025, the Company entered into a one year lease agreement (the “Fourth Machine Lease Agreement”) with a digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 2,646,250 . During the three and nine months ended September 30, 2025, the Company recognized revenue of $ 4,396,603 and $ 6,085,452 , respectively, in connection with its digital assets mining operations. Loan Agreement In July 2025 the Company secured a $ 20 million credit facility with Coinbase, its digital assets custodian (the “Custodian”). Pursuant to the terms of the agreement, either party may terminate a loan on a termination date established by notice given to the other party prior to the close of business on any day that is a calendar day. On July 8, 2025, the Company entered into an agreement (the “Loan Agreement”) pursuant to which the Company borrowed $ 8 million (the “Initial Drawdown”) and segregated 232 bitcoin as collateral against this loan. The initial Drawdown bears an 8 % loan fee. The Company’s obligations are secured by a first-priority security interest at collateral-coverage ratio of about 156.25 % of the outstanding principal amount. The initial Drawdown is subject to the terms and conditions of the Master Loan Agreement. Of the $ 8 million borrowed, $ 6.7 million was used to purchase 61.4 Bitcoin. As of September 30, 2025 the Company repaid $ 4.2 million principal and $ 91,178 in interest. As of September 30, 2025, 70 Bitcoin valued at $ 7,983,990 , are being held as collateral for the outstanding loan balance. ​ ​ ​ ​ ​ ​ Loan ​ ​ Payable Outstanding, January 1, 2025 ​ $ — Proceeds from loan payable ​ 8,000,000 Repayments in cash ​ ( 4,200,000 ) Total loan payable as of September 30, 2025 ​ $ 3,800,000 ​ On October 15, 2025, the Company repaid the outstanding balance in full, and the full $ 20 million credit facility remains available. 19 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS As of September 30, 2025 and December 31, 2024, prepaid expenses and other current assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2025 2024 Bitcoin mining leases ​ $ 1,537,583 ​ $ — Professional fees ​ ​ 410,191 ​ ​ 40,142 Deferred expenses ​ ​ 362,540 ​ ​ 405,463 Insurance ​ ​ 269,641 ​ ​ — Security deposits ​ ​ 50,213 ​ ​ 50,213 Dues and subscriptions ​ ​ 27,883 ​ ​ 25,355 Marketing and advertising ​ ​ 10,000 ​ ​ 285,000 Vendor receivables ​ ​ 7,386 ​ ​ 7,386 Compensation costs ​ ​ — ​ ​ 275,000 Other ​ ​ 73,612 ​ ​ 52,981 Total prepaid expenses and other current assets ​ $ 2,749,049 ​ $ 1,141,540 ​ ​ 20 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 5 – INVESTMENTS, IMPAIRMENT AND CREDIT LOSSES During the nine months ended September 30, 2025, the Company made two investments in a private German entity (“Investee”), who is also a customer, including Series A7 Preferred Shares and a convertible loan receivable. On November 13, 2025 , the Investee filed an application with a German insolvency court to open insolvency proceedings. As a result, as of September 30, 2025, the Company has fully impaired or recognized credit losses associated with the Company’s investments and accounts receivable associated with the Investee. The details of these matters follow: ● On May 7, 2025, the Company purchased Series A7 Preferred Shares (the “Preferred Shares”) of Investee for an aggregate purchase price of approximately $ 3.3 million. The Preferred Shares rank senior to all outstanding preferred as well as common shares of Investee, and are convertible on a 1 :1 basis into common shares of Investee at the Company’s option, subject to anti-dilution adjustments. The Company also has the right to one voting advisory board seat and one non-voting observer seat on Investee’s advisory board. Investee’s Preferred Shares have a liquidation preference equal to the purchase price of the shares plus any accrued and unpaid dividends thereon. The Company’s purchase of Preferred Shares represents an investment in non-marketable equity securities of a company without a readily determinable fair value. The Company accounts for this investment under the measurement alternative in ASC 321, whereby the equity investment is recorded at cost, and is subsequently remeasured to its fair value in accordance with the provisions of ASC 820 when observable price changes occur or when it is impaired (see Note 2 - Significant Accounting Policies, Equity Investment). Due to the Investee’s current financial condition, the Company estimated that the fair value of its Preferred Shares investment in Investee was zero , and accordingly, recorded a full impairment expense of $ 3,325,045 , reflected in Impairment of equity investment within Other expense for the three and nine months ended September 30, 2025. ● On August 25, 2025, the Company executed a Convertible Loan Agreement (the “Note”) with the Investee to loan up to € 2,000,000 . The Note carries a 12 % interest rate, and it matures on November 30, 2025. The Note is convertible into the most senior class of preferred shares of Investee at the time of conversion. The Company can demand conversion at maturity, or prior to maturity if certain defined events occur. As of September 30, 2025, the Company loaned $ 1,832,690 (€ 1,550,000 ) to Investee pursuant to the Note (see Note 15 – Subsequent Events for details about a subsequent distribution pursuant to the Note). The Company accounts for the Note at amortized cost and records an estimate of expected credit losses using a forward-looking current expected credit loss (CECL) model in accordance with ASC 326. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable forecasts about the future. Due to the Investee’s current financial condition, the Company determined the collectability of the Note was not assured and accordingly, recorded a full credit loss of $ 1,832,690 , reflected in Credit loss on convertible loan receivable within Other expense for the three and nine months ended September 30, 2025. In addition to the above balances, the Company had accounts receivable due from the Investee related to product sales made during the second quarter of 2025. Due to the Investee’s current financial condition, the Company determined that collectability of the accounts receivable was not assured and accordingly, recorded credit losses on accounts receivable of $ 780,643 , reflected within operating expenses for the three and nine months ended September 30, 2025. ​ NOTE 6 – EQUIPMENT DEPOSITS Equipment deposits at September 30, 2025 and December 31, 2024 are $ 59,763 and $ 1,355,174 , respectively. Equipment deposits at December 31, 2024 represented deposits paid to a vendor as a downpayment for the manufacture of an automated manufacturing system (the “System”). The System was never delivered to the Company. After negotiation, and in an effort to come to a resolution on the matter, the Company agreed to forfeit the equipment deposit while the vendor retained the unfinished equipment. During the three and nine months ended September 30, 2025, the Company recorded a write-down of $ 0 and $ 1,355,174 , respectively, related to the equipment deposits. 21 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 7 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, 2025 and December 31, 2024, accrued expenses and other current liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 Payroll and vacation ​ $ 387,709 ​ $ 369,847 Professional fees ​ ​ 285,368 ​ ​ 176,875 Inventory purchases ​ ​ 280,301 ​ ​ 332,094 Sales tax payable ​ ​ 116,328 ​ ​ 111,732 Research and development ​ ​ 85,427 ​ ​ 50,000 Interest payable ​ ​ 37,479 ​ ​ 24,102 Business development ​ 36,179 ​ ​ — Royalties ​ 35,026 ​ ​ 48,402 Equipment purchases ​ ​ 16,604 ​ ​ 32,717 Sales and marketing ​ 8,886 ​ ​ — Other ​ ​ 10,752 ​ ​ 25,643 Total accrued expenses and other liabilities ​ ​ 1,300,059 ​ ​ 1,171,412 Less: current portion ​ ​ ( 1,300,059 ) ​ ​ ( 1,160,446 ) Other non-current liabilities ​ $ — ​ $ 10,966 ​ ​ NOTE 8 – ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the nine months ended September 30, 2025 is presented below: ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ September 30, 2025 Beginning balance at January 1, 2025 ​ $ 420,427 Additions ​ ​ 210,904 Gain from mark-to-market ​ ​ ( 409,091 ) Shares issued in satisfaction of accrued issuable equity ​ ​ ( 69,500 ) Fair value at September 30, 2025 ​ $ 152,740 ​ During the nine months ended September 30, 2025, the Company entered into certain contractual arrangements for services in exchange for a fixed number of shares of common stock of the Company. The estimated fair value of the shares to be issued was an aggregate of $ 210,904 based on the quoted market prices of the shares as of the respective contract dates. During the nine months ended September 30, 2025, the Company settled certain of its accrued issuable equity obligations through the issuance of an aggregate of 6,250 of its shares of common stock with an aggregate fair value of $ 69,500 , remeasured as of the date of settlement based on the quoted market prices of the shares. During the three and nine months ended September 30, 2025, the Company recorded gains in the aggregate amount of $ 89,815 and $ 409,091 , respectively, and recorded (losses) gains in the aggregate amount of $ 13,437 and $( 2,302 ) during the three and nine months ended September 30, 2024, respectively, related to changes in the fair value of accrued issuable equity (see Note 12 – Stockholders’ Equity, Stock-Based Compensation for additional details). The fair value of the accrued but unissued shares as of September 30, 2025, was $ 152,740 , based on Level 1 inputs, which consist of quoted prices for the Company’s common stock in active markets. ​ NOTE 9 – LEASES Operating Leases On January 31, 2024, the initial lease for Webster, Texas dated January 18, 2023, expired. On January 27, 2024, the Company entered into a new lease agreement for new office space in Webster, Texas, with an initial lease term of 63 months . The lease contains an option 22 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) to renew for an additional 36 months , which is not reasonably certain to be exercised and therefore is not included in the measurement of the operating lease ROU asset and related lease liability. Monthly rental payments under the new lease are $ 33,818 , which is comprised of $ 22,682 of base rent and $ 11,136 of common area maintenance fees. No cash payments were due for the first three months of the lease. The Company determined that the value of the operating lease liability and related right-of-use asset at inception was $ 1,085,498 , using an incremental borrowing rate of 10 %. The Company paid a security deposit of $ 37,930 in connection with the Webster lease agreement which is recorded within the security deposits section of the balance sheets as of September 30, 2025 and December 31, 2024. On April 15, 2025, the Company amended its original lease dated January 27, 2024 (the First Amendment”), for the property located at 555 Forge River Road, Webster, TX, to expand the rentable square footage by approximately 13,535 square feet (the “Expansion Premises) for a total rentable space of 31,095 square feet. The First Amendment is effective May 1, 2025 and expires April 30, 2029. Monthly payments for the Expansion Premises are $ 17,483 . No cash payments are due for the first two months of the lease. The Company determined that the value of the operating lease liability and related right-of-use asset at inception was $ 691,852 , using an incremental borrowing rate of 10 %. The Company also leases office space at 4863 Shawline Street, San Diego, CA, pursuant to an operating lease which originally expired May 31, 2024 (the “San Diego Lease”). On January 25, 2024, the Company entered into an amendment to the lease (the “First Renewal”), whereby the lease was extended for a period of eighteen months commencing June 1, 2024, and terminating November 30, 2025. The Company does not plan to renew this lease upon its expiration. Monthly rental payments under the amendment are $ 30,511 . The Company determined that the value of the modified operating lease liability and related right-of-use asset to be $ 559,919 using an incremental borrowing rate of 10 %. The Company paid a security deposit of $ 50,213 in connection with the San Diego lease agreement which is recorded within the prepaid expenses and other current assets section of the balance sheet as of September 30, 2025. During the three and nine months ended September 30, 2025, operating lease expense was $ 204,070 and $ 541,245 , respectively. During the three and nine months ended September 30, 2024, operating lease expense was $ 150,846 and $ 377,554 , respectively. Finance Lease The Company recorded depreciation expense in the amount of $ 388 and $ 1,165 in connection with ROU assets held under the finance lease during the three and nine months ended September 30, 2025. The Company recorded interest expense of $ 41 and 138 during the three and nine months ended September 30, 2025, in connection with its finance lease liability. The Company recorded depreciation expense in the amount of $ 388 in connection with ROU assets held under the finance lease during the three and nine months ended September 30, 2024. The Company recorded interest expense of $ 62 during the three and nine months ended September 30, 2024, in connection with its finance lease liability. Supplemental Information ​ Maturities of lease liabilities as of September 30, 2025, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Operating Lease Financing Lease Total 10/1/25 to 12/31/25 ​ $ 181,515 ​ $ 659 ​ $ 182,174 2026 ​ ​ 496,224 ​ ​ 2,636 ​ ​ 498,860 2027 ​ ​ 511,772 ​ ​ 1,318 ​ ​ 513,090 2028 ​ 527,319 ​ — ​ 527,319 2029 ​ ​ 180,092 ​ ​ — ​ ​ 180,092 Thereafter ​ ​ — ​ ​ — ​ ​ — Total future minimum lease payments ​ 1,896,922 ​ 4,613 ​ 1,901,535 Less: amount representing imputed interest ​ ​ ( 308,334 ) ​ ​ ( 138 ) ​ ​ ( 308,472 ) Present value of lease liabilities ​ ​ 1,588,588 ​ ​ 4,475 ​ ​ 1,593,063 Less: current portion ​ ​ ( 414,436 ) ​ ​ ( 2,526 ) ​ ​ ( 416,962 ) Lease liabilities, non current portion ​ $ 1,174,152 ​ $ 1,949 ​ $ 1,176,101 ​ 23 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Supplemental cash flow information related to the leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ September 30, ​ ​ 2025 2024 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating lease ​ $ 415,482 ​ $ 236,207 ​ Repayment of finance lease liability ​ $ 1,840 ​ $ 850 ​ Right-of-use assets obtained in exchange for lease obligations ​ ​ ​ ​ ​ ​ ​ Operating leases ​ $ 691,852 ​ $ 1,534,902 ​ Financing leases ​ ​ N/A ​ $ 7,768 ​ Weighted Average Remaining Lease Term (Years) ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 3.45 years ​ 3.64 years Financing leases ​ ​ 1.75 years ​ 2.75 years Weighted Average Discount Rate ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 10.0 % ​ 10.0 % Financing leases ​ ​ 10.0 % ​ 10.0 % ​ ​ NOTE 10-NOTES PAYABLE A summary of the notes payable activity during the nine months ended September 30, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes Debt ​ ​ ​ ​ Payable ​ Discount ​ Total Outstanding, January 1, 2025 ​ $ 577,674 ​ $ ( 82,878 ) $ 494,796 Repayments in cash ​ ( 577,674 ) ​ — ​ ( 577,674 ) Amortization of debt discount ​ — ​ 82,878 ​ 82,878 Total notes payable as of September 30, 2025 ​ $ — ​ $ — ​ $ — ​ ​ NOTE 11 – INCOME TAX The Company’s effective tax rate was zero for the three and nine months ended September 30, 2025 and 2024, respectively. The effective tax rates for all periods differs from the statutory rate of 21 % as a result of the net change in valuation allowance against the net deferred tax asset that the Company believes is not more likely than not to be realized. The Company continues to carry a full valuation allowance on its net deferred tax assets. Tax Law Change On July 4, 2025, the President signed into law significant federal tax legislation, H.R.1 (the “Tax Reform Act of 2025”). The legislation includes numerous changes to U.S. corporate income tax law, including but not limited to: permanent 100% bonus depreciation for qualified property, immediate expensing of domestic research and experimental expenditures, modifications to the limitation on business interest expense, increased Section 179 expensing limits, changes to the international tax regime, and expanded limitations on the deductibility of executive compensation under IRC Section 162(m). Most provisions are effective for tax years beginning after December 31, 2024, with certain transition rules and exceptions. The Company is currently evaluating the impact of the Tax Reform Act of 2025 on its condensed consolidated financial statements. The effects of the new law, including remeasurement of deferred tax assets and liabilities and changes to current and future tax expense, will be evaluated. No material impact is expected given the Company’s historical net operating losses. 24 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 12 - STOCKHOLDERS’ EQUITY Equity Incentive Plan On August 15 and November 5, 2018, the Board of Directors and a majority of the Company’s shareholders, respectively, approved the 2018 Equity Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 1,875,000 shares of common stock of the Company are authorized for issuance. The 2018 Plan provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants of the Company and its affiliates. The 2018 Plan requires the exercise price of stock options to be not less than the fair value of the Company’s common stock on the date of grant. As of September 30, 2025, there were 130,170 shares available for issuance under the 2018 Plan. At the Market Offerings On January 24, 2025, the Company increased the maximum aggregate offering amount of the shares of the Company’s common stock issuable under its At the Market Offering agreement (the “First ATM Agreement”) by an additional $ 50 million, to a $ 146 million maximum offering amount. On May 30, 2025, the Company completed its initial ATM offering under the First ATM Agreement with a total of 14,783,393 shares issued for gross proceeds of $ 146 million, of which 9,347,644 shares were issued and gross proceeds of $ 61.9 million were received in 2024 pursuant to the First ATM agreement. On June 9, 2025, the Company entered into a second At the Market Offering agreement (the “Second ATM Agreement”) with certain sales agents (the “Agent”), pursuant to which the Company may, from time to time, sell shares of common stock for aggregate gross proceeds of up to $ 300 million in an “At the Market” offering through or to the Agent. On September 30, 2025, the Company amended and reduced the aggregate offering amount pursuant to the Second ATM Agreement to $ 150 million. Sales of the shares of common stock, if any, will be made at prevailing market prices at the time of the sale, or as otherwise agreed with the Agent. The Agent will receive a commission from the Company of up to 3.0 % of the gross proceeds of any shares of common stock sold pursuant to the Second ATM Agreement. During the nine months ended September 30, 2025, the Company issued a total of 9,420,337 shares of common stock pursuant to the ATM Agreements for aggregate gross proceeds of $ 107,311,618 , with cash issuance costs of $ 2,685,424 . During the nine months ended September 30, 2024, the Company issued a total of 1,602,810 shares of common stock pursuant to the First ATM Agreement for aggregate gross proceeds of $ 3,431,090 , with cash issuance costs of $ 103,718 . Common Stock During the nine months ended September 30, 2025, the Company issued an aggregate of 9,000 shares of common stock valued at $ 95,570 for legal and consulting services, of which 6,250 shares valued at issuance at $ 69,500 were accrued at January 1, 2025 for services rendered in prior years. During the nine months ended September 30, 2024, the Company issued an aggregate of 43,957 shares of common stock valued at $ 104,960 for equity compensation to its independent members of the Board of Directors, legal and consulting services. During the nine months ended September 30, 2025, the Company issued 1,688 shares of common stock upon the exercise of stock options for gross proceeds of $ 10,815 . No stock options were exercised during the nine months ended September 30, 2024. 25 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) During the nine months ended September 30, 2025, the Company issued 141,200 shares of common stock upon the vesting of restricted stock units previously granted, of which 35,635 shares were withheld to cover payroll tax obligations. During the nine months ended September 30, 2024, the Company issued 77,142 shares of common stock upon the vesting of restricted stock units previously granted, and no shares were withheld to cover payroll tax obligations. See At The Market Offerings, above , for share issuances pursuant to the Company’s ATM Agreements. Treasury Stock The Company’s equity-based compensation plan allows for the grant of stock options, RSUs and RSAs to its employees pursuant to the terms of its equity incentive plan. Under the provision of the plan, unless otherwise elected, participants fulfill their related income tax withholding obligation by having shares withheld at the time of vesting. Generally, the shares withheld are then transferred to the Company’s treasury stock at cost. During the nine months ended September 30, 2025, the Company repurchased 5,527 shares recorded at their cost of $ 97,522 in connection with paying employee payroll tax obligation for vested restricted common stock units during the period. The Company had 21,922 and 16,395 shares held in treasury as of September 30, 2025 and December 31, 2024, respectively, recorded at their cost of $ 393,744 and $ 296,222 , respectively. Preferred Stock On January 16, 2025, the Board of Directors approved the issuance of an additional 270,000 shares of Non-convertible Series A Voting Preferred Stock (“Series A Preferred”) to the CEO, such that the total shares of Series A Preferred held by the CEO as of September 30, 2025 is 1,000,000 shares. The issuance of up to 1,000,000 shares of Non-convertible Series A Voting Preferred Stock to the CEO was previously approved and authorized by a vote of the majority stockholders of the Company, subject to the Board reserving the full and unequivocal right to revoke, rescind, transfer or otherwise cancel the issued Non-convertible Series A Voting Preferred Stock in the event the CEO is removed from any position with the Company or resigns from all positions with the Company. Holders of Non-convertible Series A Voting Preferred Stock shall not be entitled to dividends, shall not convert into another series or class of stock of the Company and have no rights to distributions in the event of any liquidation. Accordingly, there was no value ascribed to these shares when issued. Each record holder of Non-convertible Series A Voting Preferred Stock shall have that number of votes (identical in every other respect to the voting rights of the holders of common stock entitled to vote at any regular or special meeting of the shareholders or by written consent) equal to one-hundred ( 100 ) votes per share of Non-convertible Series A Voting Preferred Stock held by such record holder. Warrants There was no warrant activity during the three and nine months ended September 30, 2025. The weighted average exercise price of warrants outstanding at September 30, 2025 was $ 8.50 . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ ​ Warrants ​ Price ​ Term (Yrs) ​ Value Outstanding, January 1, 2025 88,905 ​ $ 8.50 ​ Issued — ​ — ​ Exercised — ​ — ​ Expired — ​ — ​ Forfeited — ​ — ​ Outstanding, September 30, 2025 88,905 ​ $ 8.50 0.3 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, September 30, 2025 88,905 ​ $ 8.50 0.3 ​ $ — ​ 26 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) A summary of outstanding and exercisable warrants as of September 30, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants Outstanding ​ Warrants Exercisable ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Life ​ Number of Price Warrants In Years Warrants $ 8.00 ​ 66,667 ​ 0.3 ​ 66,667 $ 10.00 ​ 22,238 ​ 0.3 ​ 22,238 ​ ​ ​ 88,905 ​ 0.3 ​ 88,905 ​ Stock-Based Compensation The following table presents information related to stock-based compensation for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months Ended ​ For The Nine Months Ended ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Shares issued for legal and consulting services ​ $ — ​ $ 49,220 ​ $ 26,070 ​ $ 76,360 Shares issued to board members ​ ​ — ​ ​ — ​ ​ — ​ ​ 17,400 Accrued issuable equity (common stock) ​ 59,585 ​ 19,160 ​ 210,904 ​ 72,537 Amortization of stock options ​ 10,547 ​ ​ 9,411 ​ 37,493 ​ 70,617 Amortization of restricted stock awards and units ​ 1,217,942 ​ ( 21,592 ) ​ 4,235,774 ​ 1,574,242 Total ​ $ 1,288,074 ​ $ 56,199 ​ $ 4,510,241 ​ $ 1,811,156 ​ During the three and nine months ended September 30, 2025, the Company recognized stock-based compensation expense of $ 1,288,074 and $ 4,510,241 respectively, of which $ 1,140,466 and $ 3,536,611 , respectively, are included within selling, general and administrative expenses, and $ 147,608 and $ 973,630 , respectively are included within research and development expenses in the condensed consolidated statements of operations. During the three and nine months ended September 30, 2024, the Company recognized stock-based compensation expense of $ 56,199 and $ 1,811,156 , respectively, of which $ 25,561 and $ 1,704,505 , respectively, is included within selling, general and administrative expenses, and $ 30,638 and $ 106,651 , respectively is included within research and development expenses in the condensed consolidated statements of operations. Stock Options A summary of stock options activity during the nine months ended September 30, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ ​ Options ​ Price ​ Term (Yrs) ​ Value Outstanding, January 1, 2025 40,938 ​ $ 11.88 ​ Granted 6,250 ​ 9.60 ​ Forfeited ( 19,250 ) ​ 12.40 ​ Exercised ​ ( 1,688 ) ​ ​ 6.48 ​ ​ ​ ​ ​ Outstanding, September 30, 2025 26,250 ​ $ 11.31 3.9 ​ $ 10,563 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, September 30, 2025 13,285 ​ $ 13.68 1.9 ​ $ 2,642 ​ 27 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following table presents information related to stock options as September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ Options Exercisable ​ ​ ​ ​ Weighted ​ ​ ​ ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Life ​ Number of Price Options In Years Options $ 2.24 - $ 7.92 5,625 ​ 3.4 ​ 2,032 $ 9.60 - $ 12.00 8,125 ​ 2.1 ​ 938 $ 12.40 - $ 15.92 6,250 ​ 1.6 ​ 5,626 $ 16.40 - $ 18.48 6,250 ​ 1.5 ​ 4,689 ​ 26,250 ​ 1.9 ​ 13,285 ​ No options were granted during the three months ended September 30, 2025. The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2025 was $ 8.47 . For the nine months ended September 30, 2024, the weighted average grant date fair value per share of options granted was $ 1.58 . No options were granted during the three months ended September 30, 2024. The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. In applying the Black-Scholes option pricing model, the Company used the following range of assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months Ended For The Nine Months Ended ​ ​ ​ September 30, September 30, ​ ​ ​ 2025 2024 2025 2024 ​ Risk free interest rate N/A ​ N/A ​ 4.15 % 4.27 % - 4.81 % Expected term (years) N/A ​ N/A ​ 6.3 ​ 3.8 ​ Expected volatility N/A ​ N/A ​ 120 % 110 % - 114 % Expected dividends N/A ​ N/A ​ 0 % 0 % ​ Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of employee option grants. The Company utilizes an expected volatility figure based on the historical volatility of its common stock over a period of time equivalent to the expected term of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. As of September 30, 2025, there was $ 81,115 of unrecognized stock-based compensation expense related to the above stock options, which will be recognized over the weighted average remaining vesting period of 2.44 years. Restricted Stock Awards The following table presents information related to restricted stock awards activity during the three and nine months ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Shares of Restricted ​ Grant Date ​ Common Stock Fair Value Non-vested RSAs, January 1, 2025 9,375 ​ $ 16.48 Granted — ​ — Vested ( 1,563 ) ​ 16.64 Forfeited — ​ — Non-vested RSAs, September 30, 2025 7,812 ​ $ 16.45 ​ As of September 30, 2025, there was $ 69,538 of unrecognized stock-based compensation expense related to restricted stock awards that will be recognized over the weighted average remaining vesting period of 0.98 years. 28 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Restricted Stock Units The following table presents information related to restricted stock units (“RSUs”) activity during the three and nine months ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Shares of Restricted ​ Grant Date ​ Common Stock Fair Value Non-vested RSUs, January 1, 2025 717,829 ​ $ 10.47 Granted 626,783 ​ ​ 19.55 Vested ( 141,200 ) ​ ​ 8.34 Forfeited ​ ( 44,596 ) ​ ​ 12.14 Non-vested RSUs, September 30, 2025 ​ 1,158,816 ​ $ 15.60 ​ ​ ​ ​ ​ ​ Vested RSUs undelivered September 30, 2025 ​ 93,750 ​ $ 16.40 ​ To date, RSUs have only been granted to employees and consultants in accordance with the Company’s 2018 Equity Incentive Plan. Pursuant to the terms of the restricted stock unit agreements, the vested but undelivered units are to be settled on January 1, 2026. As of September 30, 2025, there was $ 14,172,986 of unrecognized stock-based compensation expense related to restricted stock units that will be recognized over the weighted average remaining vesting period of 3.13 years. ​ NOTE 13 – COMMITMENTS AND CONTINGENCIES Legal Matters The Company may be involved in litigation and arbitrations from time to time in the ordinary course of business. As of September 30, 2025, the Company was not involved in any ongoing litigation. The Company records legal costs associated with loss contingencies as incurred. Settlements are accrued when, and if, they become probable and estimable. ​ NOTE 14 – SEGMENT REPORTING During the first quarter of 2025, the Company expanded on its treasury strategy and began mining digital assets. The Company determined these activities met the criteria of an operating segment. The Company operates as two operating and reporting segments (i) energy management platform, and (ii) mining of digital assets, namely, the development and commercialization of energy management technologies, batteries and other components across a range of applications, and the mining of bitcoin. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker (“CODM”), who is the Company’s chief executive officer, reviews profit and loss information on a consolidated basis in order to assess performance, make decisions about the allocation of operating and capital resources, and evaluate pricing strategies related to the energy management platform. The CODM is not regularly provided disaggregated expense information, other than the expense information included in the consolidated statements of operations. The CODM reviews financial information for mining digital assets separately from the financial information related to the energy management platform for making decisions, allocating resources and assessing financial performance, as well as making strategic operational decisions and managing the organization. The Company does not have intra-entity sales or transfers. The CODM does not consider gains and losses associated with digital assets when reviewing the results of operations, or allocating resources to the Company’s operating segments. Gains and losses associated with the Company’s digital assets (which is a corporate treasury function and is not considered an operating segment) are presented separately from segment net income. Beginning in 2025, the Company has broken out a Corporate & Other category, which is not considered an operating segment, and includes the changes in fair value of the Company’s digital asset holdings. 29 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following tables present the breakout of the operations of the energy management and digital asset mining segments for the three and nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Platform Mining Other Total Platform Mining Other Total Revenue ​ $ 2,488,237 ​ $ 4,396,603 ​ $ — ​ $ 6,884,840 ​ $ 3,185,778 ​ $ — ​ $ — ​ $ 3,185,778 Cost of revenue ​ 2,066,887 ​ 4,189,073 ​ — ​ 6,255,960 ​ 928,326 ​ — ​ — ​ 928,326 Gross Profit ​ 421,350 ​ 207,530 ​ — ​ 628,880 ​ 2,257,452 ​ — ​ — ​ 2,257,452 Operating Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 2,323,010 ​ — ​ — ​ 2,323,010 ​ 1,232,333 ​ — ​ — ​ 1,232,333 Selling, general, and administrative ​ 6,062,159 ​ 201,644 ​ — ​ 6,263,803 ​ 2,735,419 ​ — ​ — ​ 2,735,419 Credit losses on accounts receivable ​ ​ 780,643 ​ ​ — ​ ​ — ​ ​ 780,643 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total Operating Expenses ​ 9,165,812 ​ 201,644 ​ — ​ 9,367,456 ​ 3,967,752 ​ — ​ — ​ 3,967,752 Segment Operating (Loss) Gain ​ ( 8,744,462 ) ​ 5,886 ​ — ​ ( 8,738,576 ) ​ ( 1,710,300 ) ​ — ​ — ​ ( 1,710,300 ) Other (Expense) Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other segment (expense) income (1) ​ 84,833 ​ — ​ — ​ 84,833 ​ ( 293,464 ) ​ — ​ — ​ ( 293,464 ) Impairment of equity investment ​ ​ ( 3,325,045 ) ​ ​ — ​ ​ — ​ ​ ( 3,325,045 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Credit loss on convertible loan receivable ​ ​ ( 1,832,690 ) ​ ​ — ​ ​ — ​ ​ ( 1,832,690 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Change in fair value of digital assets ​ — ​ — ​ 6,837,563 ​ 6,837,563 ​ — ​ — ​ — ​ — Total Other Income (Expense), net ​ ( 5,072,902 ) ​ — ​ 6,837,563 ​ 1,764,661 ​ ( 293,464 ) ​ — ​ — ​ ( 293,464 ) Net (Loss) Income ​ $ ( 13,817,364 ) ​ $ 5,886 ​ $ 6,837,563 ​ $ ( 6,973,915 ) ​ $ ( 2,003,764 ) ​ $ — ​ $ — ​ $ ( 2,003,764 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ Energy ​ ​ ​ ​ ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ Management Bitcoin Corporate & ​ ​ ​ Management Bitcoin Corporate & ​ ​ ​ ​ Platform Mining Other Total Platform Mining Other Total Revenue ​ $ 7,220,991 ​ $ 6,085,452 ​ $ — ​ $ 13,306,443 ​ $ 7,366,887 ​ $ — ​ $ — ​ $ 7,366,887 Cost of revenue ​ 5,805,171 ​ 5,952,337 ​ — ​ 11,757,508 ​ 4,026,018 ​ — ​ — ​ 4,026,018 Gross Profit ​ ​ 1,415,820 ​ 133,115 ​ — ​ 1,548,935 ​ 3,340,869 ​ — ​ — ​ 3,340,869 Operating Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 7,209,664 ​ — ​ — ​ 7,209,664 ​ 3,492,144 ​ — ​ — ​ 3,492,144 Selling, general, and administrative ​ 20,889,583 ​ 302,466 ​ — ​ 21,192,049 ​ 11,542,820 ​ — ​ — ​ 11,542,820 Credit losses on accounts receivable ​ ​ 780,643 ​ ​ — ​ ​ — ​ ​ 780,643 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total Operating Expenses ​ 28,879,890 ​ 302,466 ​ — ​ 29,182,356 ​ 15,034,964 ​ — ​ — ​ 15,034,964 Segment Operating (Loss) Gain ​ ( 27,464,070 ) ​ ( 169,351 ) ​ — ​ ( 27,633,421 ) ​ ( 11,694,095 ) ​ — ​ — ​ ( 11,694,095 ) Other (Expense) Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other segment (expense) income (1) ​ 696,109 ​ — ​ — ​ 696,109 ​ ( 1,209,073 ) ​ — ​ — ​ ( 1,209,073 ) Impairment of equity investment ​ ​ ( 3,325,045 ) ​ ​ — ​ ​ — ​ ​ ( 3,325,045 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Credit loss on convertible loan receivable ​ ​ ( 1,832,690 ) ​ ​ — ​ ​ — ​ ​ ( 1,832,690 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Change in fair value of digital assets ​ — ​ — ​ 14,456,623 ​ 14,456,623 ​ — ​ — ​ — ​ — Total Other Income (Expense), net ​ ( 4,461,626 ) ​ — ​ 14,456,623 ​ 9,994,997 ​ ( 1,209,073 ) ​ — ​ — ​ ( 1,209,073 ) Net (Loss) Income ​ $ ( 31,925,696 ) ​ $ ( 169,351 ) ​ $ 14,456,623 ​ $ ( 17,638,424 ) ​ $ ( 12,903,168 ) ​ $ — ​ $ — ​ $ ( 12,903,168 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ September 30, 2025 ​ December 31, 2024 ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Platform Mining Other Total Platform Mining Other Total Segment Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ $ 20,588,596 ​ $ — ​ $ — ​ $ 20,588,596 ​ $ 29,831,858 ​ $ — ​ — ​ $ 29,831,858 Digital assets ​ — ​ 6,353,264 ​ 114,169,997 ​ 120,523,261 ​ — ​ — ​ 20,281,184 ​ 20,281,184 All other assets ​ 14,950,957 ​ — ​ — ​ 14,950,957 ​ 12,814,145 ​ — ​ — ​ 12,814,145 Total Assets ​ $ 35,539,553 ​ $ 6,353,264 ​ $ 114,169,997 ​ $ 156,062,814 ​ $ 42,646,003 ​ $ — ​ $ 20,281,184 ​ $ 62,927,187 (1) Other segment expenses and losses include interest income, interest expense, amortization of debt discount, gain (loss) on extinguishment of debt and change in fair value of accrued issuable equity. ​ 30 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Geographic Information As of September 30, 2025, $ 126,354,558 of the Company’s long-lived assets are located in the U.S., and $ 1,180,129 are in a foreign nation. As of December 31, 2024, all of the Company’s long-lived assets were located in the U.S. During the three and nine months ended September 30, 2025, $ 287,492 and $ 2,453,860 of revenue was generated from non-U.S. customers. During the three and nine months ended September 30, 2024, $ 1,913,527 and $ 2,219,588 of revenue was generated from non-U.S. customers. ​ NOTE 15 - SUBSEQUENT EVENTS At the Market Offering During the period from October 1, 2025 through November 14, 2025, the Company issued 3.0 million shares of common stock for gross proceeds of $ 15.1 million pursuant to the Second ATM Agreement. Digital Assets During the period from October 1, 2025 through November 14, 2025, the Company has earned 7.43 Bitcoin from mining services. Digital Asset Mining Lease Agreement On October 1, 2025, the Company entered into a two year lease agreement (the “Fifth Machine Lease Agreement”) with a digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 4.2 million. Repayment of Loan Payable Subsequent to September 30, 2025, the Company repaid the remaining $ 3.8 million principal balance of the loan payable and $ 49,139 of interest pursuant to the Loan Agreement entered into on July 8, 2025. Convertible Loan Receivable On October 24, 2025, the Company loaned an additional $ 294,875 (€ 250,000 ) to the Investee pursuant to the convertible loan agreement, which has been fully impaired. See Note 5 – Investments, Impairment and Credit Losses for additional information. Investment in Foreign Entity On November 13, 2025, the Company was notified that its Investee, that is also a customer, filed an application with a German insolvency court to open insolvency proceedings. See Note 5 – Investments, Impairment and Credit Losses for additional information. ​ ​ ​ 31 Table of Contents